Oil prices were little changed on Tuesday as markets weighed the impact of newly announced U.S. tariffs on countries that buy Venezuelan oil and an uncertain outlook for global demand.

Brent crude futures were up 1 cent at $73.01 a barrel by 0424 GMT. U.S. West Texas Intermediate crude futures were down 1 cent at $69.10.

Both benchmarks rose more than 1% on Monday after U.S. President Donald Trump announced 25% tariffs on countries that import Venezuelan oil and gas. Oil is Venezuela's main export and China, already subject to U.S. tariffs, is its biggest buyer.

"Investors are concerned that Trump's tariffs could slow the economy and curb oil demand, but the prospect of tighter U.S. sanctions on Venezuelan and Iranian oil that are limiting supply, along with his rapid policy changes, make it difficult to take large positions," said Tsuyoshi Ueno, senior economist at NLI Research Institute.

"We expect WTI to hold around $70 for the rest of the year, with potential for seasonal gains as the U.S. and other countries enter the driving season," he added.

Last week, the U.S. imposed new sanctions aimed at hitting Iranian oil exports.

However, crude fell from session highs after the Trump administration also on Monday extended to May 27 a deadline for U.S. producer Chevron (CVX.N) , open new tab to halt operations in Venezuela.

Revoking Chevron's license to operate could reduce production in the country by about 200,000 barrels per day, ANZ analysts wrote in a note.

Oil prices were also pressured by economic concerns amid rising global trade tensions.

Trump also said auto tariffs would come into effect soon, though he indicated that not all of the levies he has threatened would be imposed by April 2 and that some countries could get waivers, a move Wall Street took as a sign of flexibility on an issue that has roiled markets for weeks.

Meanwhile, OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, is likely to stick to its plan to raise oil output for a second straight month in May, four sources told Reuters, amid stable oil prices and plans to force some members to cut pumping to offset previous overproduction.

Investors are also monitoring talks to end the war in Ukraine, which could boost supplies of Russian crude to global markets.

U.S. and Russian officials ended a day of talks on Monday that focused on a narrow proposal for a ceasefire at sea between Kyiv and Moscow, part of a diplomatic effort that Washington hopes will help pave the way for broader peace negotiations. (Newsmaker23)

Source: Reuters